Question 1

The AICPA has more active credential holders (Certified Valuation Analysts)than all other valuation credentials combined.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is the foremost professional organization for the business valuation discipline?

Accepted Answer

A)  the National Society of Business Appraisers 
B)  the American Association of Business Valuators and Appraisers 
C)  the American Society of Appraisers 
D)  the National Association of Certified Valuators and Analysts 
A)  the National Society of Business Appraisers 
B)  the American Association of Business Valuators and Appraisers 
C)  the American Society of Appraisers 
D)  the National Association of Certified Valuators and Analysts

Question 3

Which of the following is true of nonoperating assets of a business?

Accepted Answer

A)  These are included in the valuation depending on the approach used. 
B)  These are required to produce the expected future benefit stream. 
C)  These should be excluded from the valuation. 
D)  These should always be included in the valuation. 
A)  These are included in the valuation depending on the approach used. 
B)  These are required to produce the expected future benefit stream. 
C)  These should be excluded from the valuation. 
D)  These should always be included in the valuation.

Question 4

Which of the following valuation approaches employs the time value of money?

Accepted Answer

A)  asset approach 
B)  liabilities approach 
C)  market approach 
D)  income approach 
A)  asset approach 
B)  liabilities approach 
C)  market approach 
D)  income approach

Question 5

Egan,a forensic accountant,was appointed for a business valuation engagement by the management of Dreamsong,Inc.He qualified the purpose of the valuation,type of engagement,and the ownership interest to be considered.What should be Egan's next step?

Accepted Answer

A)  Issue the valuation report. 
B)  Estimate the value of the business. 
C)  Gather the necessary information. 
D)  Analyze the information gathered. 
A)  Issue the valuation report. 
B)  Estimate the value of the business. 
C)  Gather the necessary information. 
D)  Analyze the information gathered.

Question 6

Which of the following standards of value is often used in dissenting minority interest in litigation?

Accepted Answer

A)  fair value 
B)  fair market value 
C)  book value 
D)  investment value 
A)  fair value 
B)  fair market value 
C)  book value 
D)  investment value

Question 7

Which of the following statements is true of fair value as a standard of valuation?

Accepted Answer

A)  It is the most widely recognized standard of value. 
B)  It does not propose a hypothetical sale in an open and unrestricted market. 
C)  It is mandated for all federal tax matters. 
D)  Its operational meaning does not vary from state to state because it is statutorily defined. 
A)  It is the most widely recognized standard of value. 
B)  It does not propose a hypothetical sale in an open and unrestricted market. 
C)  It is mandated for all federal tax matters. 
D)  Its operational meaning does not vary from state to state because it is statutorily defined.

Question 8

In practice,absent valid market comps,forensic accountants most commonly use the dividend payout method.

Accepted Answer

A) True 
 B)False

Question 9

Prospective data are more commonly used to value closely held companies.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is a difference between a forecast and a projection?

Accepted Answer

A)  A forecast reflects conditions that may occur, whereas a projection reflects expected conditions based on current knowledge of trends in relevant factors. 
B)  A forecast is typically for a short period, whereas projections can be made several years into the future projection. 
C)  A forecast is based on hypothetical assumptions, whereas a projection is based on current knowledge of trends. 
D)  A forecast invites rebuttal arguments of speculation and bias, whereas a projection is deemed to be the most appropriate indicator of expected future benefits. 
A)  A forecast reflects conditions that may occur, whereas a projection reflects expected conditions based on current knowledge of trends in relevant factors. 
B)  A forecast is typically for a short period, whereas projections can be made several years into the future projection. 
C)  A forecast is based on hypothetical assumptions, whereas a projection is based on current knowledge of trends. 
D)  A forecast invites rebuttal arguments of speculation and bias, whereas a projection is deemed to be the most appropriate indicator of expected future benefits.

The AICPA has more active credential holders (Certified Valuation Analysts)than all other valuation credentials combined.

Which of the following is the foremost professional organization for the business valuation discipline?

Which of the following is true of nonoperating assets of a business?

Which of the following valuation approaches employs the time value of money?

Egan,a forensic accountant,was appointed for a business valuation engagement by the management of Dreamsong,Inc.He qualified the purpose of the valuation,type of engagement,and the ownership interest to be considered.What should be Egan's next step?

Which of the following standards of value is often used in dissenting minority interest in litigation?

Which of the following statements is true of fair value as a standard of valuation?

In practice,absent valid market comps,forensic accountants most commonly use the dividend payout method.

Prospective data are more commonly used to value closely held companies.

Which of the following is a difference between a forecast and a projection?

Introduction to the World of Forensic Accounting

The Legal Environment of Forensic Accounting

Screening and Staging Engagements

Gathering Evidence Interviews and Observations

Financial Statements Analysis Reading Between the Lines

Fraud and White-Collar Crime

Conducting a Fraud Investigation

Transforming Data Into Evidence

Transforming Data Into Evidence

Professional Responsibilities

Special Topics

Filters

Exam 11: Fundamentals of Business Valuation

The AICPA has more active credential holders (Certified Valuation Analysts)than all other valuation credentials combined.

Which of the following is the foremost professional organization for the business valuation discipline?

Which of the following is true of nonoperating assets of a business?

Which of the following valuation approaches employs the time value of money?

Egan,a forensic accountant,was appointed for a business valuation engagement by the management of Dreamsong,Inc.He qualified the purpose of the valuation,type of engagement,and the ownership interest to be considered.What should be Egan's next step?

Which of the following standards of value is often used in dissenting minority interest in litigation?

Which of the following statements is true of fair value as a standard of valuation?

In practice,absent valid market comps,forensic accountants most commonly use the dividend payout method.

Prospective data are more commonly used to value closely held companies.

Which of the following is a difference between a forecast and a projection?

Introduction to the World of Forensic Accounting

The Legal Environment of Forensic Accounting

Screening and Staging Engagements

Gathering Evidence Interviews and Observations

Financial Statements Analysis Reading Between the Lines

Fraud and White-Collar Crime

Conducting a Fraud Investigation

Transforming Data Into Evidence

Transforming Data Into Evidence

Professional Responsibilities

Special Topics

Filters